1. Cost Recovery:
Creating a Policy &
Plan
A NPCI Webinar
September 30,
2009

2. Cost Recovery: Creating a Policy &
Plan
Today’s Speaker
Nina Platt
Principal Consultant
Nina Platt Consulting, Inc.

3. Cost Recovery: Creating a Policy &
Plan
Agenda
• Developing a policy that outlines the what,
when and how of cost recovery
• Developing a cost recovery plan and
procedures that detail how the policy will
be implemented
• Creating and implementing a cost
recovery communication plan

4. Cost Recovery: Creating a Policy &
Plan
First Course of Action
Quit waffling
Decide

5. Cost Recovery: Creating a Policy &
Plan
Cost Recovery Policy
• Based on
– Firm’s overall financial goals
– Cost of contracts or subscriptions in place
– Firm culture
– Client response

6. Cost Recovery: Creating a Policy &
Plan
Cost Recovery Policy
Elements
• Firm will invoice clients for online research
expense including ...[list resources could
be a separate document]
• Exceptions to the policy must be approved
by …
• Engagement letters must include
….[again, a separate document could be
used]

7. Cost Recovery: Creating a Policy &
Plan
Cost Recovery Policy
Elements
• Discounts will be applied as follows…
• The following resources will be provided to
the client at no cost ...
• Training will be required for the following
resources including refresher courses on a
[ … ] basis

8. Cost Recovery: Creating a Policy &
Plan
Cost Recovery Policy
Elements
• Certification will be provided for those who
attend …
• Individuals will be required to make
corrections to disbursements that do not
have a correctly formatted or incorrect
client/matter numbers upon request.

9. Cost Recovery: Creating a Policy &
Plan
Policy Discussion
• Do any of you have a policy in place now?
If so, can you briefly describe it?
• Other questions or comments?

10. Cost Recovery: Creating a Policy &
Plan
Cost Recovery Strategy/Plan
• What goals do you have for recovery?
• Who will participate and what roles will
they play?
• What will your process be?
• How is disbursement done?
• How will you track your success?
• When will you review for the need to make
changes?

11. Cost Recovery: Creating a Policy &
Plan
Cost Recovery Strategy/Plan
• Goal(s)
– What resources (contract vs. subscriptions)
– What % of cost will be disbursed to clients
– What will be discounted or made available
without cost
– How the budget is created
– Communication will be transparent

12. Cost Recovery: Creating a Policy &
Plan
Roles
• List individual positions taking part in the
process
• Describe each role
• Note any special task for each

13. Cost Recovery: Creating a Policy &
Plan
Process Documentation
• Document workflow between those
involved
• Include specific tasks for each
• Be as detailed as possible when
describing tasks
• Include process for creation of
engagement letters

14. Cost Recovery: Creating a Policy &
Plan
What to Include in Procedures
• Title of procedure
• Who’s involved
• Knowledge needed
• Supplies
• Time needed to complete
• Steps to take
• Conclusion

15. Cost Recovery: Creating a Policy &
Plan
Tips for Writing Procedures
• Create steps as numbered lists– limit to 10
• Limit each step to one task
• Put conditional info first
• Use action verbs
• Provide only the information needed to
complete the task
• Provide workflow or play script
• Refer to related procedures if necessary

16. Cost Recovery: Creating a Policy &
Plan
Disbursements
• Weekly vs. Monthly vs. Quarterly
• Vendor usage statements
• Use of other cost recovery tools
– Client/Matter validation
– Exception management
– Usage reports

17. Cost Recovery: Creating a Policy &
Plan
Strategy/Plan/Procedures
Discussion
• Have you documented your strategy, plan
and procedures?
• What roles do partners, accounting and
the library play with cost recovery of online
legal research at your firms? Is it
working?
• Other questions or comments?

18. Cost Recovery: Creating a Policy &
Plan
Communication Plan
• Use the 4 P’s of Communication
– Purpose - Why
– Picture - What
– Plan - How
– Part - Who

19. Cost Recovery: Creating a Policy &
Plan
Internal Communication
• Announcement of policy by management
committee
• Explanation of plan by library director /
accounting director / executive director
• Use various formats to introduce plan
– Email, meetings, individual visits, small groups,
orientation
• Link plan to policy (handouts, intranet links, etc)

20. Cost Recovery: Creating a Policy &
Plan
External Communication
• Existing Clients
– Billing partner has responsibility
– Library/Accounting can provide materials
• Policy
• Talking points
• New Clients
– Engagement letters
– Additional materials

21. Cost Recovery: Creating a Policy &
Plan
External Communication
• Vendors
– Goal to provide cost effective research
– Provide copy of policy
– Tell them you expect them to act as partner in
recovery
– Work with them to form their communication
to researchers

22. Cost Recovery: Creating a Policy &
Plan
Talking Points
• One to two sentence description of policy
• Goal is to provide most cost effective
research through training
• Value of online research
– Provides substantive research
– Saves time
– Includes sources directly related to matter

23. Cost Recovery: Creating a Policy &
Plan
Talking Points
• Discounts
• Free resources
• Exceptions

24. Cost Recovery: Creating a Policy &
Plan
Communications
Discussion
• Do you have any communication
experiences that worked well? Are there
any recommendations you would like to
make based on those experiences?
• Other questions or comments?

25. Cost Recovery: Creating a Policy &
Plan
Tracking Success
• Determine audience
– Management committee, administrators, group
heads, individuals, etc.
• Define metrics
• Develop reports
• Create reporting schedule
• Build in feedback/response
• Adjust tracking and/or make change to policy
and plan

26. Cost Recovery: Creating a Policy &
Plan
Conclusion
• Cost recovery requires a policy and plan to
be successful for the long term
• Planning should include a strong
communication component
• Tracking the results of putting a Cost
Recovery Policy & Plan in place is
essential to demonstrate ongoing benefits

27. Cost Recovery: Creating a Policy &
Plan
Contact Us for More
Information
• Nina Platt Consulting, Inc. (NPCI)
nplatt@ninaplatt.com
Call us: 612-235-7485
Visit us on the web: www.ninaplatt.com
Read our blogs:
http://strategiclibrarian.com
http://lawfirmintranet.com
http://electronicresourcereview.wordpress.com